Lowe's (LOW, $183.91) fiscal Q1 earnings beats Zacks Consensus Estimates, despite revenue miss
Lowe’s posted its fiscal first quarter earnings that surpassed Zacks consensus expectations, even as revenue missed estimates.
The home improvement retailer’s earnings came in at $3.51 a share, exceeding the Zacks Consensus Estimate of $3.24. It is +9.3% higher from the year-ago quarter.
Net sales fell -3.1% year-over-year to $23,659 million, below the Zacks Consensus Estimate of $23,731 million. Comparable sales dropped -4% in the quarter. Comparable sales for the U.S. home-improvement business dipped -3.8%. Pro customer sales surged +20%.
For fiscal 2022, Lowe’s reaffirmed its outlook for revenues of $97-99 billion (vs. revenues of $96.3 billion in fiscal 2021).
The company expects comparable sales in fiscal 2022 in the range of a decrease of -1% to an increase of + 1%. Its projected operating margin is 12.8-13%.
LOW sees its Stochastic Oscillator recovers from oversold territory
On June 24, 2022, the Stochastic Indicator for LOW moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 59 instances where the indicator left the oversold zone. In 41 of the 59 cases the stock moved higher in the following days. This puts the odds of a move higher at over 69%.
Current price $173.83 crossed the support line at $174.26 and is trading between $174.26 support and $173.38 support lines. Throughout the month of 05/26/22 - 06/29/22, the price experienced a -10% Downtrend, while the week of 06/22/22 - 06/29/22 shows a +1% Uptrend.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LOW's RSI Oscillator exited the oversold zone, 16 of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The Moving Average Convergence Divergence (MACD) for LOW just turned positive on June 27, 2022. Looking at past instances where LOW's MACD turned positive, the stock continued to rise in 30 of 44 cases over the following month. The odds of a continued upward trend are 68%.
Following a +4.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where LOW advanced for three days, in 243 of 371 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
LOW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on June 10, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on LOW as a result. In 44 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LOW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
The Aroon Indicator for LOW entered a downward trend on June 29, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 68%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.08.
The Tickeron Valuation Rating of 1 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (10.781). P/E Ratio (14.265) is within average values for comparable stocks, (41.390). Projected Growth (PEG Ratio) (1.167) is also within normal values, averaging (1.297). Dividend Yield (0.018) settles around the average of (0.034) among similar stocks. P/S Ratio (1.262) is also within normal values, averaging (34.061).
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 16 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 49 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating fairly steady price growth. LOW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
The average market capitalization across the Specialty Stores Industry is 6B. The market cap for tickers in the group ranges from 48 to 277.6B. HD holds the highest valuation in this group at 277.6B. The lowest valued company is CALI at 48.
The average weekly price growth across all stocks in the Specialty Stores Industry was -3.98%. For the same Industry, the average monthly price growth was 37.82%, and the average quarterly price growth was 26.92%. YSG experienced the highest price growth at 45.06%, while SIMPQ experienced the biggest fall at -85.19%.
- 6/25/22 5:09 AM: Lowe's Companies (LOW, $182.84) was a top weekly gainer, with a +6.01% jump
- 5/28/22 5:10 AM: Lowe's Companies (LOW, $199.63) was a top weekly gainer, with a +8.09% jump
The average weekly volume growth across all stocks in the Specialty Stores Industry was 28.77%. For the same stocks of the Industry, the average monthly volume growth was 30.83% and the average quarterly volume growth was 96.41%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the TrendWeek Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.28.
62 stocks in the group of tickers confirmed the negative outlook based on the Aroon indicator with average odds of 74%.
The most notable companies in this group are Home Depot (NYSE:HD), Lowe's Companies (NYSE:LOW), AutoZone (NYSE:AZO), Tractor Supply Company (NASDAQ:TSCO), Ulta Beauty (NASDAQ:ULTA), Best Buy Company (NYSE:BBY), Advance Auto Parts (NYSE:AAP), GameStop Corp (NYSE:GME), Five Below (NASDAQ:FIVE), Bath & Body Works (NYSE:BBWI).
The average market capitalization across the group is 7.5B. The market cap for tickers in the group ranges from 0 to 277.6B. HD holds the highest valuation in this group at 277.6B. The lowest valued company is FRGAP at 0.
The average weekly price growth across all stocks in the group was -2.42%. For the same group, the average monthly price growth was -10.24%, and the average quarterly price growth was -31.79%. YSG experienced the highest price growth at 45.06%, while CCRRF experienced the biggest fall at -69.45%.
- 6/30/22 5:20 AM: Meso Numismatics (MSSV, $0.06) was a top loser this week, declining -20.25%
- 6/29/22 4:33 AM: China Yongda Automobile Svcs (CYYHF, $0.95) was a top loser this week, declining -9.52%
- 6/28/22 5:38 AM: National Vision Holdings (EYE, $30.54) was a top weekly gainer, with a +18.42% jump
The average weekly volume growth across all stocks in the group was 730.71%. For the same stocks of the group, the average monthly volume growth was 793.12% and the average quarterly volume growth was 188.81%
- 6/29/22 4:24 AM: The volume for Yatsen Holding stock increased for one day, resulting in a record-breaking daily growth of 328% of the 65-Day Volume Moving Average
- 6/28/22 5:29 AM: The volume for Kingfisher stock increased for one day, resulting in a record-breaking daily growth of 545% of the 65-Day Volume Moving Average
- 6/25/22 5:00 AM: The volume for Volta stock increased for one day, resulting in a record-breaking daily growth of 316% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows